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NINETY EIGHT REGENCY

Henderson Said to Get 60% Odds From Car Task Force on Fixing GM

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Henderson Said to Get 60% Odds From Car Task Force on Fixing GM

Sept. 8 (Bloomberg) -- General Motors Co.’s board was told by the Treasury’s auto task force that Chief Executive Officer Fritz Henderson has about a 60 percent chance of fixing the automaker, a person familiar with the briefing said.

Advisers to the federal panel offered that assessment at an Aug. 3 meeting that was closed to management, said the person, who asked not to be identified because the session was private. The aides said the board could improve the odds by being engaged with Henderson and hiring outside executives to help him change GM’s mind-set, according to the person.

The task force’s analysis suggests there will be close board scrutiny of Henderson, a 25-year employee, as he tackles a corporate culture that dragged GM into bankruptcy. Directors were told that GM is too insular, has too little accountability and lacks urgency in decision making, the person said.

“Everybody recognizes that things have to change going forward,” Chairman Ed Whitacre said in an Aug. 27 interview. “Fritz recognizes that. He knows our feelings about the corporate strategy and plan. I think he will succeed.”

Whitacre said in the interview that he recalled the presentation, while declining to discuss details. A GM spokeswoman said today that Whitacre wouldn’t comment further. Henderson declined to comment yesterday when asked about the meeting, which he didn’t attend.

The 90-minute session at GM’s Technical Center in Warren, Michigan, served as a handoff from the federal overseers of the biggest U.S. automaker and was the first since the 13-member board was revamped by the Treasury with 7 new directors led by Whitacre, 67, a former AT&T Inc. CEO and chairman.

more at link:

http://www.bloomberg.com/apps/news?pid=206...id=aMcLGP8BugLo

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The aides said the board could improve the odds by being engaged with Henderson and hiring outside executives to help him change GM’s mind-set, according to the person.

That is what needs to be changed primarily more than products or marketing. Bringing people who believe that a better GM comes from hard work and ability to get off the touche and start working for a better GM with some accountability.

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